United Baggage Handlers To Receive 30 Percent Pay Increase

April 20, 2016
About 30,000 United Airlines gate agents and baggage handlers approved a new contract to raise pay by about 30 percent over the next five years.

About 30,000 United Airlines gate agents and baggage handlers approved a new contract to raise pay by about 30 percent over the next five years. 

The 14 separate contracts for the Fleet Service, Passenger Service, Storekeeper, Maintenance Instructor, Fleet Technical Instructor and Related and Security Officer classifications also called for $100 million in lump sum payments, retirement security and protections against outsourcing, according to the International Association of Machinists and Aerospace Workers (IAM) union. 

"These contracts will provide a strong foundation on which to build future improvements that will better the lives of IAM members at United Airlines," Sito Pantoja, IAM general vice president, said in a news release.  

United said it would not outsource more jobs in baggage handling or customer service until at least 2019, perhaps a stark contrast from February 2015 when United planned to outsource 1,150 positions across 16 U.S. airports, according to the Wall Street Journal.  

With medical benefits, a 401(K) and travel benefits, its members might cost $35,000 a year more than an outsourced worker, according to the Machinists union.  

But boosting employee morale was something CEO Oscar Munoz aimed for following the return to his position from medical leave.  

"Since September when I became CEO, our team has been focused on our employees, improving the operation and the customer experience, and the results are starting to show," Munoz said in a new release, referring to the full-time return to his role on March 14. 

The tentative agreement was reached on April 4.